LITTLE ROCK, Ark., Oct. 17, 2024 (GLOBE NEWSWIRE) -- Bank OZK (the "Bank") (NASDAQ:OZK) today announced that net income available to common stockholders for the third quarter of 2024 was $177.1 million, its eighth consecutive quarterly record and a 4.4% increase from $169.7 million for the third quarter of 2023. For the first nine months of 2024, net income available to common stockholders was $522.1 million, a 3.7% increase from $503.5 million for the first nine months of 2023.

Diluted earnings per common share for the third quarter of 2024 were $1.55, its eighth consecutive quarterly record and a 4.0% increase from $1.49 for the third quarter of 2023. For the first nine months of 2024, diluted earnings per common share were $4.58, a 4.8% increase from $4.37 for the first nine months of 2023.

Pre-tax pre-provision net revenue ("PPNR") was a record $282.6 million for the third quarter of 2024, a 7.0% increase from $264.0 million for the third quarter of 2023. For the first nine months of 2024, PPNR was $834.6 million, an 8.4% increase from $769.9 million for the first nine months of 2023. The calculation of PPNR and the reconciliation to generally accepted accounting principles ("GAAP") are included in the schedules accompanying this release.

Provision for credit losses was $46.4 million for the third quarter of 2024 compared to $44.0 million for the third quarter of 2023, while our net charge-offs were only $26.0 million and $9.4 million, respectively, for those quarters. For the first nine months of 2024, provision for credit losses was $138.4 million compared to $121.6 million for the first nine months of 2023, while our net charge-offs were only $45.1 million and $25.4 million, respectively, for those nine month periods. The Bank's total allowance for credit losses ("ACL") was $594.5 million at September 30, 2024, an increase of $133.1 million or 28.8% compared to $461.5 million at September 30, 2023.

The Bank's annualized returns on average assets, average common stockholders' equity and average tangible common stockholders' equity for the third quarter of 2024 were 1.90%, 13.65% and 15.65%, respectively, compared to 2.13%, 14.81% and 17.33%, respectively, for the third quarter of 2023. For the first nine months of 2024, the Bank's annualized returns on average assets, average common stockholders' equity and average tangible common stockholders' equity were 1.93%, 13.92%, and 16.04%, respectively, compared to 2.26%, 15.06%, and 17.68%, respectively, for the first nine months of 2023. The calculation of the Bank's returns on average common stockholders' equity and average tangible common stockholders' equity and the reconciliations to GAAP are included in the schedules accompanying this release.

George Gleason, Chairman and Chief Executive Officer, stated, "We are very pleased with our results for the quarter just ended giving us our eighth consecutive quarter of record net income and earnings per share and ninth consecutive quarter of record net interest income. This consistent achievement of record results has allowed us to consistently increase dividends, significantly grow capital and opportunistically repurchase shares, all while significantly increasing our allowance for credit losses."

KEY BALANCE SHEET METRICS

Loans were $29.22 billion at September 30, 2024, a 15.3% increase from $25.33 billion at September 30, 2023. Deposits were $30.57 billion at September 30, 2024, a 19.6% increase from $25.55 billion at September 30, 2023. Total assets were $37.44 billion at September 30, 2024, a 14.3% increase from $32.77 billion at September 30, 2023.

Common stockholders' equity was $5.25 billion at September 30, 2024, a 15.1% increase from $4.56 billion at September 30, 2023. Tangible common stockholders' equity was $4.59 billion at September 30, 2024, a 17.7% increase from $3.90 billion at September 30, 2023.

Book value per common share was $46.31 at September 30, 2024, a $5.96 increase from $40.35 at September 30, 2023. Tangible book value per common share was $40.49 at September 30, 2024, a $5.99 increase from $34.50 at September 30, 2023.

The Bank's strong earnings and earning retention rate, among other factors, have contributed to our robust capital ratios. The Bank's ratio of total common stockholders' equity to total assets was 14.03% at September 30, 2024, compared to 13.93% at September 30, 2023. The Bank's ratio of total tangible common stockholders' equity to total tangible assets was 12.49% at September 30, 2024, compared to 12.16% at September 30, 2023. The calculations of the Bank's total common stockholders' equity, tangible common stockholders' equity, ratio of total tangible common stockholders' equity to total tangible assets and tangible book value per common share, and the reconciliations to GAAP, are included in the schedules accompanying this release.

ASSET QUALITY

The Bank's ratio of nonperforming loans to total loans was 0.60% at September 30, 2024, compared to 0.30% at June 30, 2024 and 0.27% as of September 30, 2023. The Bank's ratio of nonperforming assets to total assets was 0.68% at September 30, 2024, compared to 0.42% at June 30, 2024 and September 30, 2023. The Bank's annualized ratio of net charge-offs to average total loans was 0.36% for the quarter and 0.21% for the first nine months of 2024, compared to 0.15% for both the third quarter and first nine months of 2023.

MANAGEMENT'S COMMENTS, CONFERENCE CALL, TRANSCRIPT AND FILINGS

In connection with this release, the Bank released management's comments on its quarterly results, which are available at http://ir.ozk.com. This release should be read in conjunction with management's comments on the quarterly results.

Management will conduct a conference call to take questions at 10:00 a.m. CT (11:00 a.m. ET) on Friday, October 18, 2024. Interested parties may access the conference call live via webcast on the Bank's investor relations website at https://ir.ozk.com/news/event-calendar, or may participate via telephone by registering using this online form. Upon registration, all telephone participants will receive the dial-in number along with a unique PIN number that can be used to access the call. A replay of the conference call webcast will be archived on the Bank's website for at least 30 days.

The Bank files annual, quarterly and current reports, proxy materials, and other information required by the Securities Exchange Act of 1934 with the Federal Deposit Insurance Corporation ("FDIC"), copies of which are available electronically at the FDIC's website at https://efr.fdic.gov/fcxweb/efr/index.html and are also available on the Bank's investor relations website at ir.ozk.com. To receive automated email alerts for these materials please visit https://ir.ozk.com/other/email-alerts to sign up.

NON-GAAP FINANCIAL MEASURES

This release contains certain non-GAAP financial measures. The Bank uses these non-GAAP financial measures, specifically return on average common stockholders' equity, return on average tangible common stockholders' equity, tangible book value per common share, total common stockholders' equity, total tangible common stockholders' equity, the ratio of total tangible common stockholders' equity to total tangible assets, and PPNR, to assess the strength of its capital, its ability to generate earnings on tangible capital invested by its shareholders and trends in its net revenue. These measures typically adjust GAAP financial measures to exclude intangible assets or provision for credit losses. Management believes presentation of these non-GAAP financial measures provides useful supplemental information which contributes to a proper understanding of the financial results and capital levels of the Bank. These non-GAAP disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP performance measures that may be presented by other banks. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables at the end of this release under the caption "Reconciliation of Non-GAAP Financial Measures."

FORWARD-LOOKING STATEMENTS

This press release and other communications by the Bank include certain "forward-looking statements" regarding the Bank's plans, expectations, thoughts, beliefs, estimates, goals and outlook for the future that are intended to be covered by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on management's expectations as well as certain assumptions and estimates made by, and information available to, management at the time. Those statements are not guarantees of future results or performance and are subject to certain known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. These risks, uncertainties and other factors include, but are not limited to: potential delays or other problems in implementing the Bank's growth, expansion and acquisition strategies, including obtaining regulatory or other approvals, delays in acquiring satisfactory sites, obtaining permits and designing, constructing and opening new offices, relocating, selling or closing existing offices, or integrating any acquisitions; the availability of and access to capital; possible downgrades in the Bank's credit ratings or outlook which could increase the costs of or decrease the availability of funding from capital markets; the ability to attract new or retain existing deposits or to retain or grow loans, including growth from unfunded closed loans; the ability to generate future revenue growth or to control future growth in non-interest expense; interest rate fluctuations, including changes in the yield curve between short-term and long-term interest rates or changes in the relative relationships of various interest rate indices; competitive factors and pricing pressures, including their effect on the Bank's net interest margin or core spread; general economic, unemployment, credit market and real estate market conditions, and the effect of such conditions on the creditworthiness of borrowers, collateral values, the value of investment securities and asset recovery values; conditions within the banking industry; recently enacted and potential new laws and regulatory requirements or changes to existing laws and regulatory requirements, including changes affecting oversight of the financial services industry, changes intended to manage or mitigate climate and related environmental risks or changes in the interpretation and enforcement of such laws and requirements, changes as a result of the U.S. presidential and congressional elections, and the costs and expenses to comply with new and/or existing legislation and regulatory requirements; uncertainty regarding changes in U.S. government monetary and fiscal policy; the impact of any U.S. federal government shutdown or budgetary crisis; FDIC special assessments or changes to regular assessments; the ability to keep pace with technological changes, including changes regarding artificial intelligence and maintaining cybersecurity; the impact of any failure in, or breach of, our operational or security systems or infrastructure, or those of third parties with whom we do business or others, including as a result of cyberattacks or an increase in the incidence or severity of fraud, illegal payments, security breaches or other illegal acts impacting the Bank, its customers or others; natural disasters; acts of war or terrorism; the potential impact of continuing inflationary pressures; the potential impact of supply chain disruptions; national or international political instability or military conflict, including the conflict in the Middle East and the ongoing war in Ukraine; competition for and costs of recruiting and retaining qualified personnel; impairment of our goodwill; adoption of new accounting standards, or changes in existing standards; and adverse results (including costs, fines, reputational harm and/or other negative effects) from current or future litigation, regulatory examinations or other legal and/or regulatory actions or rulings as well as other factors identified in this communication or as detailed from time to time in our public filings, including those factors described in the disclosures under the headings "Forward-Looking Information" and "Item 1A. Risk Factors" in our most recent Annual Report on Form 10-K for the year ended December 31, 2023 and our quarterly reports on Form 10-Q. Should one or more of the foregoing risks materialize, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those described in, or implied by, such forward-looking statements. The Bank disclaims any obligation to update or revise any forward-looking statements based on the occurrence of future events, the receipt of new information or otherwise.

GENERAL INFORMATION

Bank OZK (NASDAQ:OZK) is a regional bank providing innovative financial solutions delivered by expert bankers with a relentless pursuit of excellence. Established in 1903, Bank OZK conducts banking operations in approximately 240 offices in nine states including Arkansas, Georgia, Florida, North Carolina, Tennessee, Texas, New York, California and Mississippi and had $37.44 billion in total assets as of September 30, 2024. For more information, visit www.ozk.com.


Bank OZK Consolidated Balance Sheets Unaudited

	September 30, 2024			December 31, 2023
	(Dollars in thousands)
ASSETS
Cash and cash equivalents	$	2,678,726		$	2,149,529
Investment securities – available for sale ("AFS")		2,952,022			3,244,371
Federal Home Loan Bank of Dallas ("FHLB") and other bankers' bank stocks		13,808			50,400
Loans		29,218,144			26,459,075
Allowance for loan losses		(420,058	)		(339,394	)
Net Loans		28,798,086			26,119,681
Premises and equipment, net		712,787			676,821
Foreclosed assets		77,949			61,720
Accrued interest receivable		173,246			170,110
Bank owned life insurance ("BOLI")		823,598			808,490
Goodwill		660,789			660,789
Other, net		550,793			295,546
Total assets	$	37,441,804		$	34,237,457

LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand non-interest bearing	$	3,855,214		$	4,095,874
Savings and interest bearing transaction		9,303,466			9,074,296
Time		17,412,933			14,234,973
Total deposits		30,571,613			27,405,143
Other borrowings		151,035			805,318
Subordinated notes		348,370			347,761
Subordinated debentures		121,652			121,652
Reserve for losses on unfunded credit commitments		174,479			161,834
Accrued interest payable and other liabilities		481,100			255,773
Total liabilities		31,848,249			29,097,481

Commitments and contingencies

Stockholders' equity:
Preferred stock: $0.01 par value; 100,000,000 shares authorized; 14,000,000 issued and outstanding at September 30, 2024 and December 31, 2023		338,980			338,980
Common stock: $0.01 par value; 300,000,000 shares authorized; 113,449,886 and 113,148,672 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively		1,135			1,131
Additional paid-in capital		1,619,832			1,612,446
Retained earnings		3,684,869			3,283,818
Accumulated other comprehensive loss		(51,957	)		(97,374	)
Total stockholders' equity before noncontrolling interest		5,592,859			5,139,001
Noncontrolling interest		696			975
Total stockholders' equity		5,593,555			5,139,976
Total liabilities and stockholders' equity	$	37,441,804		$	34,237,457


Bank OZK Consolidated Statements of Income Unaudited

	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
	(Dollars in thousands, except per share amounts)
Interest income:
Loans	$	629,934		$	529,031		$	1,843,167		$	1,428,291
Investment securities:
Taxable		7,874			9,887			26,000			29,761
Tax-exempt		11,555			9,534			33,876			28,288
Deposits with banks		32,689			17,061			83,899			36,338
Total interest income		682,052			565,513			1,986,942			1,522,678

Interest expense:
Deposits		286,608			178,823			811,735			408,577
Other borrowings		953			14,326			5,668			30,339
Subordinated notes		2,631			2,631			7,808			7,808
Subordinated debentures		2,462			2,472			7,405			7,017
Total interest expense		292,654			198,252			832,616			453,741

Net interest income		389,398			367,261			1,154,326			1,068,937
Provision for credit losses		46,443			44,036			138,378			121,638
Net interest income after provision for credit losses		342,955			323,225			1,015,948			947,299

Non-interest income:
Service charges on deposit accounts:
NSF fees		—			1,102			—			3,097
Overdraft fees		3,563			3,606			10,354			10,262
All other service charges		7,561			6,973			21,958			20,662
Trust income		2,529			2,213			6,935			6,358
BOLI income:
Increase in cash surrender value		5,758			5,252			16,870			15,295
Death benefits		1,344			—			1,344			—
Loan service, maintenance and other fees		6,534			3,995			19,358			12,165
Gains on sales of other assets		1,303			364			2,835			5,740
Net gains (losses) on investment securities		25			(270	)		560			2,066
Other		4,988			2,492			11,257			9,877
Total non-interest income		33,605			25,727			91,471			85,522

Non-interest expense:
Salaries and employee benefits		75,324			64,107			218,297			192,576
Net occupancy and equipment		17,380			17,797			53,775			55,357
Other operating expenses		47,697			47,074			139,092			136,616
Total non-interest expense		140,401			128,978			411,164			384,549

Income before taxes		236,159			219,974			696,255			648,272
Provision for income taxes		54,953			46,144			161,958			132,564
Net income		181,206			173,830			534,297			515,708
Earnings attributable to noncontrolling interest		(12	)		(37	)		(22	)		(50	)
Preferred stock dividends		4,047			4,047			12,141			12,141
Net income available to common stockholders	$	177,147		$	169,746		$	522,134		$	503,517

Basic earnings per common share	$	1.56		$	1.50		$	4.60		$	4.39

Diluted earnings per common share	$	1.55		$	1.49		$	4.58		$	4.37


Bank OZK Consolidated Statements of Stockholders' Equity Unaudited

	Preferred Stock		Common Stock			Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive (Loss) Income			Non-Controlling Interest			Total
	(Dollars in thousands, except per share amounts)
Three months ended September 30, 2024:
Balances – June 30, 2024	$	338,980	$	1,135		$	1,615,101		$	3,553,523		$	(100,939	)	$	985		$	5,408,785
Net income		—		—			—			181,206			—			—			181,206
Earnings attributable to noncontrolling interest		—		—			—			(12	)		—			12			—
Total other comprehensive income		—		—			—			—			48,982			—			48,982
Preferred stock dividends, $0.28906 per share		—		—			—			(4,047	)		—			—			(4,047	)
Common stock dividends, $0.40 per share		—		—			—			(45,801	)		—			—			(45,801	)
Return of capital paid to noncontrolling interest		—		—			—			—			—			(301	)		(301	)
Issuance of 3,197 shares of common stock pursuant to stock-based compensation plans		—		—			28			—			—			—			28
Repurchase and cancellation of 11,903 shares of common stock under share repurchase program		—		—			(462	)		—			—			—			(462	)
Stock-based compensation expense		—		—			5,165			—			—			—			5,165
Forfeitures of 6,646 shares of unvested restricted common stock		—		—			—			—			—			—			—
Balances – September 30, 2024	$	338,980	$	1,135		$	1,619,832		$	3,684,869		$	(51,957	)	$	696		$	5,593,555

Nine months ended September 30, 2024:
Balances – December 31, 2023	$	338,980	$	1,131		$	1,612,446		$	3,283,818		$	(97,374	)	$	975		$	5,139,976
Cumulative effect of change in accounting principle		—		—			—			12,690			—			—			12,690
Balances – January 1, 2024		338,980		1,131			1,612,446			3,296,508			(97,374	)		975			5,152,666
Net income		—		—			—			534,297			—			—			534,297
Earnings attributable to noncontrolling interest		—		—			—			(22	)		—			22			—
Total other comprehensive income		—		—			—			—			45,417			—			45,417
Preferred stock dividends, $0.86718 per share		—		—			—			(12,141	)		—			—			(12,141	)
Common stock dividends, $1.17 per share		—		—			—			(133,773	)		—			—			(133,773	)
Return of capital paid to noncontrolling interest		—		—			—			—			—			(301	)		(301	)
Issuance of 521,651 shares of common stock pursuant to stock-based compensation plans		—		6			439			—			—			—			445
Repurchase and cancellation of 11,903 shares of common stock under share repurchase program		—		—			(462	)		—			—			—			(462	)
Repurchase and cancellation of 184,415 shares of common stock withheld for tax pursuant to stock-based compensation plans		—		(2	)		(8,008	)		—			—			—			(8,010	)
Stock-based compensation expense		—		—			15,417			—			—			—			15,417
Forfeitures of 24,119 shares of unvested restricted common stock		—		—			—			—			—			—			—
Balances – September 30, 2024	$	338,980	$	1,135		$	1,619,832		$	3,684,869		$	(51,957	)	$	696		$	5,593,555


Bank OZK Consolidated Statements of Stockholders' Equity Unaudited

	Preferred Stock		Common Stock			Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive (Loss) Income			Non-Controlling Interest		Total
	(Dollars in thousands, except per share amounts)
Three months ended September 30, 2023:
Balances – June 30, 2023	$	338,980	$	1,131		$	1,602,964		$	3,026,247		$	(159,431	)	$	1,372	$	4,811,263
Net income		—		—			—			173,830			—			—		173,830
Earnings attributable to noncontrolling interest		—		—			—			(37	)		—			37		—
Total other comprehensive loss		—		—			—			—			(39,555	)		—		(39,555	)
Preferred stock dividends, $0.28906 per share		—		—			—			(4,047	)		—					(4,047	)
Common stock dividends, $0.36 per share		—		—			—			(41,124	)		—			—		(41,124	)
Issuance of 2,446 shares of common stock pursuant to stock-based compensation plans		—		—			77			—			—			—		77
Stock-based compensation expense		—		—			4,469			—			—			—		4,469
Forfeitures of 11,663 shares of unvested restricted common stock		—		—			—			—			—			—		—
Balances – September 30, 2023	$	338,980	$	1,131		$	1,607,510		$	3,154,869		$	(198,986	)	$	1,409	$	4,904,913

Nine months ended September 30, 2023:
Balances – December 31, 2022	$	338,980	$	1,172		$	1,753,941		$	2,773,135		$	(177,649	)	$	1,359	$	4,690,938
Net income		—		—			—			515,708			—			—		515,708
Earnings attributable to noncontrolling interest		—		—			—			(50	)		—			50		—
Total other comprehensive loss		—		—			—			—			(21,337	)		—		(21,337	)
Preferred stock dividends, $0.86718 per share		—		—			—			(12,141	)		—					(12,141	)
Common stock dividends, $1.05 per share		—		—			—			(121,783	)		—			—		(121,783	)
Issuance of 505,633 shares of common stock pursuant to stock-based compensation plans		—		5			618			—			—			—		623
Repurchase and cancellation of 4,304,239 shares of common stock under share repurchase program, including excise tax		—		(44	)		(151,421	)		—			—			—		(151,465	)
Repurchase and cancellation of 215,362 shares of common stock withheld for tax pursuant to stock-based compensation plans.		—		(2	)		(8,672	)		—			—			—		(8,674	)
Stock-based compensation expense		—		—			13,044			—			—			—		13,044
Forfeitures of 26,728 shares of unvested restricted common stock		—		—			—			—			—			—		—
Balances – September 30, 2023	$	338,980	$	1,131		$	1,607,510		$	3,154,869		$	(198,986	)	$	1,409	$	4,904,913


Bank OZK Summary of Non-Interest Expense Unaudited

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(Dollars in thousands)
Salaries and employee benefits	$	75,324	$	64,107	$	218,297	$	192,576
Net occupancy and equipment		17,380		17,797		53,775		55,357
Other operating expenses:
Software and data processing		12,742		9,584		36,016		28,634
Deposit insurance and assessments		6,050		5,500		19,609		14,548
Professional and outside services		5,620		4,640		18,272		15,190
Advertising and public relations		6,089		3,779		16,874		10,998
Amortization of CRA and tax credit investments⁽¹⁾		—		8,171		—		20,151
Other		17,196		15,400		48,321		47,095
Total non-interest expense	$	140,401	$	128,978	$	411,164	$	384,549

(1) Effective January 1, 2024, the Bank adopted ASU 2023-02, Investments-Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method, which resulted in the amortization of the Bank's CRA and tax credit investments being included in income tax expense instead of non-interest expense.


Bank OZK Summary of Total Loans Outstanding Unaudited

	September 30, 2024					December 31, 2023
	(Dollars in thousands)
Real estate:
Residential 1-4 family	$	1,075,912		3.7	%	$	961,338		3.6	%
Non-farm/non-residential		7,924,453		27.1			5,309,239		20.1
Construction/land development		9,827,974		33.6			11,653,487		44.0
Agricultural		274,703		0.9			256,423		1.0
Multifamily residential		3,058,056		10.5			2,064,106		7.8
Total real estate		22,161,098		75.8			20,244,593		76.5
Commercial and industrial		1,632,110		5.6			1,269,610		4.8
Consumer		3,565,400		12.2			2,965,042		11.2
Other		1,859,536		6.4			1,979,830		7.5
Total loans		29,218,144		100.0	%		26,459,075		100.0	%
Allowance for loan losses		(420,058	)				(339,394	)
Net loans	$	28,798,086				$	26,119,681


Bank OZK Allowance for Credit Losses Unaudited

	Allowance for Loan Losses			Reserve for Losses on Unfunded Credit Commitments			Total Allowance for Credit Losses
	(Dollars in thousands)
Three months ended September 30, 2024:
Balances – June 30, 2024	$	407,079		$	167,022		$	574,101
Net charge-offs		(26,007	)		—			(26,007	)
Provision for credit losses		38,986			7,457			46,443
Balances – September 30, 2024	$	420,058		$	174,479		$	594,537

Nine months ended September 30, 2024:
Balances – December 31, 2023	$	339,394		$	161,834		$	501,228
Net charge-offs		(45,069	)		—			(45,069	)
Provision for credit losses		125,733			12,645			138,378
Balances – September 30, 2024	$	420,058		$	174,479		$	594,537

Three months ended September 30, 2023:
Balances – June 30, 2023	$	263,188		$	163,632		$	426,820
Net charge-offs		(9,370	)		—			(9,370	)
Provision for credit losses		49,540			(5,504	)		44,036
Balances – September 30, 2023	$	303,358		$	158,128		$	461,486

Nine months ended September 30, 2023:
Balances – December 31, 2022	$	208,858		$	156,419		$	365,277
Net charge-offs		(25,429	)		—			(25,429	)
Provision for credit losses		119,929			1,709			121,638
Balances – September 30, 2023	$	303,358		$	158,128		$	461,486


Bank OZK Deposits – By Customer Type Unaudited

	September 30, 2024				December 31, 2023
	(Dollars in thousands)
Non-interest bearing	$	3,855,214	12.6	%	$	4,095,874	14.9	%
Interest bearing:
Consumer and commercial:
Consumer – non-time		2,854,094	9.3			2,792,199	10.2
Consumer – time		13,133,060	43.0			10,216,217	37.3
Commercial – non-time		2,819,146	9.2			2,439,175	8.9
Commercial – time		971,632	3.2			767,566	2.8
Public funds		3,628,461	11.9			3,725,766	13.6
Brokered		2,716,206	8.9			2,655,317	9.7
Reciprocal		593,800	1.9			713,029	2.6
Total deposits	$	30,571,613	100.0	%	$	27,405,143	100.0	%


Bank OZK Selected Consolidated Financial Data Unaudited

	Three Months Ended September 30,								Nine Months Ended September 30,
	2024			2023			% Change		2024			2023			% Change
	(Dollars in thousands, except per share amounts)
Income statement data:
Net interest income	$	389,398		$	367,261		6.0	%	$	1,154,326		$	1,068,937		8.0	%
Provision for credit losses		46,443			44,036		5.5			138,378			121,638		13.8
Non-interest income		33,605			25,727		30.6			91,471			85,522		7.0
Non-interest expense		140,401			128,978		8.9			411,164			384,549		6.9
Net income		181,206			173,830		4.2			534,297			515,708		3.6
Preferred stock dividends		4,047			4,047		—			12,141			12,141		—
Net income available to common stockholders		177,147			169,746		4.4			522,134			503,517		3.7
Pre-tax pre-provision net revenue⁽¹⁾		282,602			264,010		7.0			834,633			769,910		8.4
Common share and per common share data:
Diluted earnings per common share	$	1.55		$	1.49		4.0	%	$	4.58		$	4.37		4.8	%
Basic earnings per common share		1.56			1.50		4.0			4.60			4.39		4.8
Common stock dividends per share		0.40			0.36		11.1			1.17			1.05		11.4
Book value per share		46.31			40.35		14.8			46.31			40.35		14.8
Tangible book value per common share⁽¹⁾		40.49			34.50		17.4			40.49			34.50		17.4
Weighted-average diluted shares outstanding (thousands)		114,031			113,770		0.2			113,988			115,226		(1.1	)
End of period shares outstanding (thousands)		113,450			113,136		0.3			113,450			113,136		0.3
Balance sheet data at period end:
Total assets	$	37,441,804		$	32,767,328		14.3	%	$	37,441,804		$	32,767,328		14.3	%
Loans		29,218,144			25,331,740		15.3			29,218,144			25,331,740		15.3
Allowance for loan losses		420,058			303,358		38.5			420,058			303,358		38.5
Foreclosed assets		77,949			68,738		13.4			77,949			68,738		13.4
Investment securities – AFS		2,952,022			3,153,817		(6.4	)		2,952,022			3,153,817		(6.4	)
Deposits		30,571,613			25,552,856		19.6			30,571,613			25,552,856		19.6
Other borrowings		151,035			1,430,192		(89.4	)		151,035			1,430,192		(89.4	)
Unfunded credit commitments		19,307,972			20,625,371		(6.4	)		19,307,972			20,625,371		(6.4	)
Reserve for losses on unfunded credit commitments		174,479			158,128		10.3			174,479			158,128		10.3
Preferred stock		338,980			338,980		—			338,980			338,980		—
Total common stockholders' equity⁽¹⁾		5,253,879			4,564,524		15.1			5,253,879			4,564,524		15.1
Total tangible common stockholders' equity⁽¹⁾		4,593,090			3,903,735		17.7			4,593,090			3,903,735		17.7
Net unrealized losses on investment securities AFS included in stockholders' equity		(51,957	)		(198,986	)				(51,957	)		(198,986	)
Loan to deposit ratio		95.57	%		99.13	%				95.57	%		99.13	%
Selected ratios:
Return on average assets⁽²⁾		1.90	%		2.13	%				1.93	%		2.26	%
Return on average common stockholders' equity⁽¹⁾⁽²⁾		13.65			14.81					13.92			15.06
Return on average tangible common stockholders' equity⁽¹⁾⁽²⁾		15.65			17.33					16.04			17.68
Total tangible common stockholders' equity to total tangible assets⁽¹⁾		12.49			12.16					12.49			12.16
Net interest margin – FTE⁽²⁾		4.55			5.05					4.64			5.29
Efficiency ratio		32.95			32.60					32.76			33.09
Net charge-offs to average total loans⁽²⁾		0.36			0.15					0.21			0.15
Nonperforming loans to total loans		0.60			0.27					0.60			0.27
Nonperforming assets to total assets		0.68			0.42					0.68			0.42
Allowance for loan losses to total loans		1.44			1.20					1.44			1.20
Allowance for credit losses to total loans and unfunded credit commitments		1.23			1.00					1.23			1.00
Other information:
Non-accrual loans	$	175,665		$	68,233				$	175,665		$	68,233

⁽¹⁾See accompanying schedules for reconciliation of non-GAAP financial measures.

⁽²⁾Ratios for interim periods annualized based on actual days.


Bank OZK Selected Consolidated Financial Data (continued) Unaudited

	Three Months Ended
	September 30, 2024			June 30, 2024			% Change
	(Dollars in thousands, except per share amounts)
Income statement data:
Net interest income	$	389,398		$	387,994		0.4	%
Provision for credit losses		46,443			49,012		(5.2	)
Non-interest income		33,605			28,782		16.8
Non-interest expense		140,401			137,451		2.1
Net income		181,206			177,535		2.1
Preferred stock dividends		4,047			4,047		—
Net income available to common stockholders		177,147			173,496		2.1
Pre-tax pre-provision net revenue⁽¹⁾		282,602			279,325		1.2
Common share and per common share data:
Diluted earnings per common share	$	1.55		$	1.52		2.0	%
Basic earnings per common share		1.56			1.53		2.0
Common stock dividends per share		0.40			0.39		2.6
Book value per share		46.31			44.67		3.7
Tangible book value per common share⁽¹⁾		40.49			38.85		4.2
Weighted-average diluted shares outstanding (thousands)		114,031			113,995		—
End of period shares outstanding (thousands)		113,450			113,465		—
Balance sheet data at period end:
Total assets	$	37,441,804		$	36,836,173		1.6	%
Loans		29,218,144			28,673,685		1.9
Allowance for loan losses		420,058			407,079		3.2
Foreclosed assets		77,949			71,023		9.8
Investment securities – AFS		2,952,022			2,981,929		(1.0	)
Deposits		30,571,613			29,943,663		2.1
Other borrowings		151,035			400,943		(62.3	)
Unfunded credit commitments		19,307,972			19,737,557		(2.2	)
Reserve for losses on unfunded credit commitments		174,479			167,022		4.5
Total common stockholders' equity⁽¹⁾		5,253,879			5,068,820		3.7
Total tangible common stockholders' equity⁽¹⁾		4,593,090			4,408,031		4.2
Net unrealized losses on investment securities AFS included in stockholders' equity		(51,957	)		(100,939	)
Loan to deposit ratio		95.57	%		95.76	%
Selected ratios:
Return on average assets⁽²⁾		1.90	%		1.92	%
Return on average common stockholders' equity⁽¹⁾⁽²⁾		13.65			13.98
Return on average tangible common stockholders' equity⁽¹⁾⁽²⁾		15.65			16.11
Total tangible common stockholders' equity to total tangible assets⁽¹⁾		12.49			12.19
Net interest margin – FTE⁽²⁾		4.55			4.68
Efficiency ratio		32.95			32.74
Net charge-offs to average total loans⁽²⁾		0.36			0.17
Nonperforming loans to total loans		0.60			0.30
Nonperforming assets to total assets		0.68			0.42
Allowance for loan losses to total loans		1.44			1.42
Allowance for credit losses to total loans and unfunded credit commitments		1.23			1.19
Other information:
Non-accrual loans	$	175,665		$	85,265

⁽¹⁾See accompanying schedules for reconciliation of non-GAAP financial measures.

⁽²⁾Ratios for interim periods annualized based on actual days.


Bank OZK Supplemental Quarterly Financial Data Unaudited

	9/30/24			6/30/24			3/31/24			12/31/23			9/30/23
	(Dollars in thousands, except per share amounts)
Earnings summary:
Net interest income	$	389,398		$	387,994		$	376,934		$	370,548		$	367,261
Fully taxable equivalent – FTE adjustment		3,151			3,037			3,030			2,925			2,632
Net interest income – FTE		392,549			391,031			379,964			373,473			369,893
Provision for credit losses		(46,443	)		(49,012	)		(42,923	)		(43,832	)		(44,036	)
Non-interest income		33,605			28,782			29,084			37,027			25,727
Non-interest expense		(140,401	)		(137,451	)		(133,314	)		(145,011	)		(128,978	)
Pre-tax income – FTE		239,310			233,350			232,811			221,657			222,606
FTE adjustment		(3,151	)		(3,037	)		(3,030	)		(2,925	)		(2,632	)
Provision for income taxes		(54,953	)		(52,778	)		(54,226	)		(43,600	)		(46,144	)
Noncontrolling interest		(12	)		8			(18	)		(6	)		(37	)
Preferred stock dividend		(4,047	)		(4,047	)		(4,047	)		(4,047	)		(4,047	)
Net income available to common stockholders	$	177,147		$	173,496		$	171,490		$	171,079		$	169,746
Earnings per common share – diluted	$	1.55		$	1.52		$	1.51		$	1.50		$	1.49
Pre-tax pre-provision net revenue⁽¹⁾	$	282,602		$	279,325		$	272,704		$	262,564		$	264,010
Selected balance sheet data at period end:
Total assets	$	37,441,804		$	36,836,173		$	36,029,904		$	34,237,457		$	32,767,328
Loans		29,218,144			28,673,685			28,031,348			26,459,075			25,331,740
Investment securities – AFS		2,952,022			2,981,929			3,072,391			3,244,371			3,153,817
Deposits		30,571,613			29,943,663			29,406,070			27,405,143			25,552,856
Unfunded credit commitments		19,307,972			19,737,557			20,458,796			20,561,029			20,625,371
Allowance for credit losses:
Balance at beginning of period	$	574,101		$	536,887		$	501,228		$	461,486		$	426,820
Net charge-offs		(26,007	)		(11,798	)		(7,264	)		(4,090	)		(9,370	)
Provision for credit losses		46,443			49,012			42,923			43,832			44,036
Balance at end of period	$	594,537		$	574,101		$	536,887		$	501,228		$	461,486
Allowance for loan losses	$	420,058		$	407,079		$	365,935		$	339,394		$	303,358
Reserve for losses on unfunded credit commitments		174,479			167,022			170,952			161,834			158,128
Total allowance for credit losses	$	594,537		$	574,101		$	536,887		$	501,228		$	461,486
Selected ratios:
Net interest margin – FTE⁽²⁾		4.55	%		4.68	%		4.71	%		4.82	%		5.05	%
Efficiency ratio		32.95			32.74			32.59			35.33			32.60
Net charge-offs to average total loans		0.36			0.17			0.11			0.06			0.15
Nonperforming loans to total loans		0.60			0.30			0.22			0.25			0.27
Nonperforming assets to total assets		0.68			0.42			0.34			0.38			0.42
Allowance for loan losses to total loans		1.44			1.42			1.31			1.28			1.20
Allowance for credit losses to total loans and unfunded credit commitments		1.23			1.19			1.11			1.07			1.00
Loans past due 30 days or more, including past due non-accrual loans, to total loans		0.14			0.17			0.18			0.21			0.22

⁽¹⁾Calculations of pre-tax pre-provision net revenue and the reconciliation to GAAP are included in the schedules accompanying this release.

⁽²⁾Ratios for interim periods annualized based on actual days.


Bank OZK Average Consolidated Balance Sheets and Net Interest Analysis – FTE Unaudited

	Three Months Ended September 30,												Nine Months Ended September 30,
	2024						2023						2024						2023
	Average Balance		Income/ Expense		Yield/Rate		Average Balance		Income/ Expense		Yield/Rate		Average Balance		Income/ Expense		Yield/Rate		Average Balance		Income/ Expense		Yield/Rate
	(Dollars in thousands)
ASSETS
Interest earning assets:
Interest earning deposits	$	2,411,007	$	32,689	5.39	%	$	1,312,533	$	17,061	5.16	%	$	2,096,483	$	83,899	5.35	%	$	1,005,263	$	36,338	4.83	%
Investment securities:
Taxable		1,779,675		7,874	1.76			2,243,378		9,887	1.75			1,902,826		26,000	1.83			2,351,707		29,761	1.69
Tax-exempt – FTE		1,204,528		14,627	4.83			1,031,685		12,068	4.64			1,173,413		42,882	4.88			1,033,430		35,807	4.63
Total loans - FTE		28,957,386		630,013	8.66			24,461,488		529,129	8.58			28,294,238		1,843,379	8.70			22,811,326		1,428,609	8.37
Total earning assets – FTE		34,352,596		685,203	7.94			29,049,084		568,145	7.76			33,466,960		1,996,160	7.97			27,201,726		1,530,515	7.52
Non-interest earning assets		2,713,462						2,557,808						2,738,394						2,554,214
Total assets	$	37,066,058					$	31,606,892					$	36,205,354					$	29,755,940
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest bearing liabilities:
Deposits:
Savings and interest bearing transaction	$	9,156,941	$	68,903	2.99	%	$	8,806,690	$	56,169	2.53	%	$	9,205,428	$	204,398	2.97	%	$	9,201,712	$	147,334	2.14	%
Time deposits		17,286,964		217,705	5.01			11,606,189		122,654	4.19			16,386,188		607,337	4.95			9,621,410		261,243	3.63
Total interest bearing deposits		26,443,905		286,608	4.31			20,412,879		178,823	3.48			25,591,616		811,735	4.24			18,823,122		408,577	2.90
Other borrowings⁽¹⁾		120,203		953	3.15			1,048,566		14,326	5.42			175,386		5,668	4.32			783,566		30,339	5.20
Subordinated notes		348,270		2,631	3.01			347,456		2,631	3.00			348,067		7,808	3.00			347,254		7,808	3.01
Subordinated debentures		121,652		2,462	8.05			121,652		2,472	8.06			121,652		7,405	8.13			121,647		7,017	7.71
Total interest bearing liabilities		27,034,030		292,654	4.31			21,930,553		198,252	3.59			26,236,721		832,616	4.24			20,075,589		453,741	3.02
Non-interest bearing liabilities:
Non-interest bearing deposits		3,866,808						4,294,191						3,953,241						4,370,763
Other non-interest bearing liabilities		661,754						495,147						665,882						499,163
Total liabilities		31,562,592						26,719,891						30,855,844						24,945,515
Total stockholders' equity before noncontrolling interest		5,502,526						4,885,620						5,348,540						4,809,053
Noncontrolling interest		940						1,381						970						1,372
Total liabilities and stockholders' equity	$	37,066,058					$	31,606,892					$	36,205,354					$	29,755,940
Net interest income – FTE			$	392,549					$	369,893					$	1,163,544					$	1,076,774
Net interest margin – FTE					4.55	%					5.05	%					4.64	%					5.29	%

⁽¹⁾The interest expense and the rates paid related to "other borrowings" include capitalized interest which totaled $0.7 million and $1.5 million for the third quarter and first nine months of 2024. Capitalized interest was not material

for the third quarter and first nine months of 2023. Excluding capitalized interest from the "other borrowings" expense calculation would result in a rate of 5.42% and 5.46% for the third quarter and first nine months of 2024.


Bank OZK Reconciliation of Non-GAAP Financial Measures

Calculation of Average Common Stockholders' Equity, Average Tangible Common Stockholders' Equity and the Annualized Returns on Average Common Stockholders' Equity and Average Tangible Common Stockholders' Equity

Unaudited

	Three Months Ended									Nine Months Ended
	Sept. 30,			Sept. 30,			June 30			Sept. 30,			Sept. 30,
	2024			2023			2024			2024			2023
	(Dollars in thousands)
Net income available to common stockholders	$	177,147		$	169,746		$	173,496		$	522,134		$	503,517
Average stockholders' equity before noncontrolling interest	$	5,502,526		$	4,885,620		$	5,330,984		$	5,348,540		$	4,809,053
Less average preferred stock		(338,980	)		(338,980	)		(338,980	)		(338,980	)		(338,980	)
Total average common stockholders' equity		5,163,546			4,546,640			4,992,004			5,009,560			4,470,073
Less average intangible assets:
Goodwill		(660,789	)		(660,789	)		(660,789	)		(660,789	)		(660,789	)
Core deposit and other intangible assets, net of accumulated amortization		—			—			—			—			(1,098	)
Total average intangibles		(660,789	)		(660,789	)		(660,789	)		(660,789	)		(661,887	)
Average tangible common stockholders' equity	$	4,502,757		$	3,885,851		$	4,331,215		$	4,348,771		$	3,808,186
Return on average common stockholders' equity⁽¹⁾		13.65	%		14.81	%		13.98	%		13.92	%		15.06	%
Return on average tangible common stockholders' equity⁽¹⁾		15.65	%		17.33	%		16.11	%		16.04	%		17.68	%

⁽¹⁾Ratios for interim periods annualized based on actual days.


Calculation of Total Common Stockholders' Equity, Total Tangible Common Stockholders' Equity and Tangible Book Value per Common Share Unaudited

	September 30,						June 30,
	2024			2023			2024
	(In thousands, except per share amounts)
Total stockholders' equity before noncontrolling interest	$	5,592,859		$	4,903,504		$	5,407,800
Less preferred stock		(338,980	)		(338,980	)		(338,980	)
Total common stockholders' equity	$	5,253,879		$	4,564,524		$	5,068,820
Less goodwill		(660,789	)		(660,789	)		(660,789	)
Total tangible common stockholders' equity	$	4,593,090		$	3,903,735		$	4,408,031
Shares of common stock outstanding		113,450			113,136			113,465
Book value per common share	$	46.31		$	40.35		$	44.67
Tangible book value per common share	$	40.49		$	34.50		$	38.85


Calculation of Total Common Stockholders' Equity, Total Tangible Common Stockholders' Equity and the Ratio of Total Tangible Common Stockholders' Equity to Total Tangible Assets Unaudited

	September 30,						June 30,
	2024			2023			2024
	(Dollars in thousands)
Total stockholders' equity before noncontrolling interest	$	5,592,859		$	4,903,504		$	5,407,800
Less preferred stock		(338,980	)		(338,980	)		(338,980	)
Total common stockholders' equity	$	5,253,879		$	4,564,524		$	5,068,820
Less goodwill		(660,789	)		(660,789	)		(660,789	)
Total tangible common stockholders' equity		4,593,090			3,903,735			4,408,031
Total assets	$	37,441,804		$	32,767,328		$	36,836,173
Less goodwill	$	(660,789	)	$	(660,789	)	$	(660,789	)
Total tangible assets	$	36,781,015		$	32,106,539		$	36,175,384
Ratio of total common stockholders' equity to total assets		14.03	%		13.93	%		13.76	%
Ratio of total tangible common stockholders' equity to total tangible assets		12.49	%		12.16	%		12.19	%


Calculation of Pre-Tax Pre-Provision Net Revenue Unaudited

	Three Months Ended											Nine Months Ended
	Sept 30,		June 30,			Mar 31,		Dec 31,		Sept 30,		September 30,
	2024		2024			2024		2023		2023		2024		2023
	(Dollars in thousands)
Net income available to common stockholders	$	177,147	$	173,496		$	171,490	$	171,079	$	169,746	$	522,134	$	503,517
Preferred stock dividends		4,047		4,047			4,047		4,047		4,047		12,141		12,141
Earnings attributable to noncontrolling interest		12		(8	)		18		6		37		22		50
Provision for income taxes		54,953		52,778			54,226		43,600		46,144		161,958		132,564
Provision for credit losses		46,443		49,012			42,923		43,832		44,036		138,378		121,638
Pre-tax pre-provision net revenue	$	282,602	$	279,325		$	272,704	$	262,564	$	264,010	$	834,633	$	769,910


Investor Contact:	Jay Staley (501) 906-7842
Media Contact:	Michelle Rossow (501) 906-3922

Bank OZK Announces Record Third Quarter 2024 Earnings